The Central Bank of Nigeria (CBN) has introduced significant changes to its cash handling regulations, effective January 1, 2026. The new policies abolish the ceiling on cash deposits and increase the weekly withdrawal limit to N500,000 for individuals and N5 million for corporate entities across all platforms. This move represents a substantial rise from the previous limits of N100,000 for individuals.

The CBN communicated these changes through a circular titled “Revised Cash-Related Policies,” which was endorsed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department. According to the apex bank, the overhaul aims to reduce the costs associated with managing physical cash, mitigate security risks, and address money laundering vulnerabilities linked to Nigeria’s cash-driven economy.

The earlier cash directives were designed to encourage Nigerians to adopt electronic payment options. However, a review became necessary to align with current economic conditions. The new regulations eliminate additional charges for surpassing former deposit limits and introduce a fresh cumulative withdrawal ceiling. Any amount above the stated limits will incur excess-withdrawal fees, which will be split between the CBN and the servicing bank or financial institution.

For ATM usage, customers will still be restricted to N100,000 daily, with a total weekly limit of N500,000. This contributes to the overall weekly withdrawal total applicable to ATMs, POS machines, and other channels. The CBN has also instructed banks to ensure ATMs are stocked with all available currency denominations. Meanwhile, the ceiling on over-the-counter withdrawals using third-party cheques remains at N100,000, which will also count toward a customer’s weekly limit.

The new rules will not apply to revenue-collecting accounts operated by federal, state, or local governments. Additionally, accounts belonging to microfinance banks and primary mortgage banks domiciled with commercial or non-interest banks remain exempt. However, the previous privileges granted to embassies, diplomatic offices, and donor agencies have been withdrawn.

The CBN’s revised cash-related policies are expected to have a significant impact on Nigeria’s financial sector. As the country continues to navigate its economic challenges, these changes aim to promote a more efficient and secure cash handling system. The apex bank’s efforts to curb money laundering and reduce the costs associated with physical cash management are crucial in promoting a stable financial environment. With these new regulations in place, it is essential for financial institutions and individuals to adapt to the changes and ensure compliance with the revised policies.